The closing date on a credit card is the last day of a credit card’s billing cycle and when the credit card statement gets compiled for the account. The statement will typically “close” at midnight, so the day before the closing date is likely the last day that new charges can be added to that month’s statement. The closing date is also when a credit card issuer calculates interest charges from the billing cycle, if the cardholder began the billing cycle with a balance.
To be clear, a credit card’s closing date is not the due date. But it can be an important date if you’re looking to lower your credit utilization. That’s because the closing date is when many card issuers report to credit bureaus. So the balance on the statement is what gets reported to credit bureaus. That means if you pay your bill on the due date – weeks after the statement is compiled – your credit report won’t reflect the dent you made in your balance with the payment.
You can take advantage of this by paying your balance in full before the closing date, rather than on the due date. That way, when the card issuer reports your balance info to credit bureaus, you’ll have a zero balance, which will likely improve your credit score.
The closing date for a credit card is listed on the monthly account statement, under “Opening/Closing Date” in the account summary or at the top of the statement.
Yes, if you pay your credit card early, you can use it again. You can use a credit card whenever there’s enough credit available to complete a purchase. Your available credit decreases by the amount of any purchase you make and increases by the amount of any payment. So paying your credit card bill early (and often) can help you avoid … read full answermaxing out your spending limit and having a purchase get declined. It will also reduce your credit utilization, which is good for your credit score. And it will save you a lot of money on interest. Let’s do a quick example.
Imagine your credit line is $1,000, and you make a $300 purchase. Your available credit goes down from $1,000 to $700. You could make up to $700 more in purchases at this point. But that wouldn’t be the best idea because using more than 30% of your credit line can hurt your credit. That’s where paying your bill early comes in. You have the right to make a credit card payment at any time. So if you were to pay off the $300 you spent, without spending any more, your available credit would go back to $1,000.
Now, it’s important to think about the schedule for credit card payments. Once your billing cycle closes, there is usually a grace period of 21 days or more until your due date, during which you can pay off your purchases without incurring interest.
You’re completely allowed to use your credit card during the grace period. Any purchases you make after your closing date are part of the next billing cycle, not the current one. But if you don’t pay the full balance listed on your statement, you’ll lose the grace period. That means you won’t get 21+ days between the close of your next billing cycle and your due date before interest kicks in. It will start accruing right away.
Long story short, paying your credit card early will let you use it again, assuming you have little-to-no available credit to start with. It can also improve your credit utilization. Just make sure you remember to pay your full statement balance by the due date, or else you may rack up some interest charges.
You should pay off your credit card every week if your statement balance at the end of the month would otherwise be close to your spending limit. Ideally, your balance at the end of a billing period should be less than 30 percent of your credit limit. Anything above that is bad for your credit score. So, paying off your credit card every week could prevent credit score damage. Weekly credit card payments are also a good way to keep your spending in check. You’ll be less likely to wind up with a big credit card bill that you can’t afford if you pay weekly.… read full answer
Plus, paying off your credit card every week ensures that you’re making your payments on time. If you pay in full by the due date, you won’t be charged interest on purchases either. And you’ll have more credit available for emergency spending.
A fair credit score is not good; it’s “fair”. Fair credit is a credit score of 640-699. A good credit score is 700-749. People with fair credit scores will have a difficult time getting approved for the best credit cards, ones with low interest rates, high credit limits, 0% APRs and/or lots of rewards. That is not the case for people with good credit or better. With a fair credit score, most of your options are store credit cards or secured cards that require a deposit. There are some unsecured cards for fair credit with decent rewards, but they’re rare.… read full answer
For example, the Capital One QuicksilverOne Cash Rewards card offers 1.5% cash back on all purchases. There’s also a $39 annual fee. But at this stage, you’re better served with a credit card with no annual fee, such as the Capital One Platinum card. Most cards for people with fair credit will have a low starting credit limit. Having no annual fee provides you with more spending power and reduces your utilization ratio from the start.
You should note that a fair credit score’s impact extends beyond your choice of credit cards. When banks or other lenders review an application for a mortgage, car loan or personal loan, a fair credit score could drive down the odds of approval and drive up the costs.
But if you have a fair credit score, just continue to make bill payments by the due dates and pay down existing debt. You’ll be on your way to having a good credit score. It’s also a good idea to check your credit report for any errors that might affect your credit score.
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. This question was posted by WalletHub.
Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.